Question: Develop the Bayesian network discussed in this section using Netica. Then answer the following questions using that network. For each question start with a network
Develop the Bayesian network discussed in this section using Netica. Then answer the following questions using that network. For each question start with a network with no instantiated nodes.
1. Instantiate inflation (F2) to high. What effect does this have on the probability distribution of the value of the portfolio?
2. Instantiate rBIO to high. What effect does this have on the probability distribution of the value of the portfolio? Now instantiate inflation (F2)
to high. Is there any further effect on the probability distribution of the value of the portfolio?
3. Instantiate kGDT to high. What effect does this have on the probability distributions of PaDT and the value of the portfolio?
4. Instantiate PEGDT to low and gGDT to lOW. What effect does this have on the probability distributions of PGDT and the value of the portfolio? Now instantiate kGDT to high. Is there any further effect on the probability distributions of PGDT o r the value of the portfolio?
5. Instantiate business cycle (F1) to low. What effect does this have on the probability distribution of inflation (F2)?
6. Instantiate market return (rm) to low. What effect does this have on the probability distribution of inflation (F2)? Now instantiate business cycle (F1) to low. Is there any further effect on the probability distribution of inflation (F2)?
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